Unintended Beneficiaries - How to Make Sure Your Estate is Protected

Don't let an ex-son-in-law or ex-daughter-in-law get a portion of your hard-earned assets. Unfortunately, a traditional will exposes your assets to such a scenario.

A simple strategy to avoid this from happening is setting up a revocable living trust. One of the most attractive features of trusts is that they can be set up to serve a variety of different circumstances and achieve different objectives. In fact, trusts are routinely utilized for gifting, asset management, tax protection, and as a shield against creditors and/or civil lawsuits. Trusts can be established while you are living, or they can be included in a will with a stipulation that the trust is to be established after your passing.

To learn more, read the full article here:
http://insightlaw.net/bobbys-blog/protecting-your-assets-from-unintended-beneficiaries

The Awkward Convo You Need to Have With Your Loved Ones

It's not easy and can be extremely uncomfortable, but you need to approach your parents about the subject of inheritance. Also, if you have children, you need to sit down and talk to them about your estate plan. Why? Because having your loved ones on the same page when it comes to how your estate (or your parent's estate) will be distributed will reduce the risk of litigation, agitation, and stress. To learn more, check out this article:

http://insightlaw.net/bobbys-blog/having-that-awkward-conversation-family-inheritance

LegalZoom Embroiled in Lawsuit Over Flawed Documents

LegalZoom has grown in popularity over the years by offering cheap, stock legal documents. They sell their services as being just as effective as hiring a lawyer. Well, turns out that really isn't the case. The company is now embroiled in a lawsuit because of preventable flaws in some of their documents. To learn more, check out this article:

http://insightlaw.net/current-events/legaldoom-cookie-cutter-estate-planning-site-legalzoom-being-sued-for-flawed-documents

5 Important Estate Planning Tips

Drafting an estate plan from scratch can be a daunting task. That's why I published an article with 5 important tips on how to get the process started. I targeted people under 40 since so many young people neglect getting their estate in order until they're much older. You're putting yourself at risk if you don't sit down and take the time to plan your estate. Having a well-crafted estate plan will help your family and loved ones when the time comes to use it.

Here's a link to the article:
http://insightlaw.net/bobbys-blog/under-40-top-5-tips-for-getting-a-jump-on-estate-planning?doing_wp_cron=1405706402.3413279056549072265625

Estate Planning Tip - Where To Add Your Burial Rites

It's something many people don't think a lot about - how and where they will be buried. Even if they do think about this issue when drafting their estate plan, the issue of where to place such information is not very clear. I wrote a blog about this topic. Check it out here...

http://insightlaw.net/bobbys-blog/burial-rites-add-to-your-health-care-proxy-will-or-both

Great Summary of the Virginia Real Property Transfer on Death Act

A new estate planning tool went into effect on July 1, 2013 under the Virginia Real Property Transfer on Death Act. This law allows an owner of real estate to make a Transfer on Death designation by recording a Revocable Transfer on Death Deed in public land records. This article below features 8 important developments in this recently enacted Virginia law:

http://wordsofconveyance.com/2014/05/29/revocable-transfer-on-death-deed/#comment-156

Planning for Possible Mental Incapacity is Important

I published an article recently about the heartbreaking state of affairs for Casey Kasem and his family. Mr. Kasem is struggling with a form of dementia and his loved ones are embroiled in a legal battle over who should take care of him. Learn more here:

http://insightlaw.net/current-events/casey-kasem-legal-battle-illustrates-the-importance-of-preparing-for-a-loved-ones-incapacitated-state

Facebook Account, Amazon Prime, Etc - Your Digital Assets Matter

Do you have a plan that effectively organizes and manages your digital assets? If not, don't feel bad. You're not alone. However, it's vitally important. Why? Because the average internet user has nearly $40,000 in unprotected digital assets. To learn more, check out this blog:

http://insightlaw.net/bobbys-blog/dealing-with-digital-assets-a-growing-need

Important Info About UGMA/UTMA Accounts

What's an UGMA/UTMA account? Well, UGMA stands for the "Uniform Gifts to Minors Act" (or Uniform Transfers to Minors Act, in some states). The difference between UGMA and UTMA is that an UTMA allows almost any kind of asset to be transferred to a minor. An UGMA law limits gifts/transfers to the following: bank deposits, securities (including mutual funds), and insurance policies.

UGMA/UTMA allows a minor to own securities in an account without having to establish a special trust. The assets become available to the minor when they reach the age of majority. The age of majority is usually 18 years of age (it’s 18 in Virginia, Maryland, and the District of Columbia). Though, it varies in other states (for example, it’s 19 in Delaware and Alabama).

To learn more, check out the full-length article here:

http://insightlaw.net/bobbys-blog/ugmautma-accounts-pros-and-cons

Avoidable Estate Planning Mistakes

Call me biased, but I think every functioning adult should have an estate plan. However, just throwing together an estate plan without thinking it through can result in more problems than solutions. Below is a blog I wrote about some of the most common estate planning mistakes that far too many people make (and can be avoided):

Big Estate Planning Mistakes Many People Make (But Can Easily Be Avoided)

The moral of the story? Take the time to sit down with an estate planning attorney to properly draft your estate plan.

Gen X Needs to Step Up When It Comes to Financial Planning

A recent study by the Insured Reitrement Institute found that over 75 percent of individuals categorized as “Generation X” (i.e. people with birth dates from the early 1960s to the early 1980s) do not consult with a financial advisor to help plan for retirement. Furthermore, 65 percent of people in Generation X who make $75,000 or more in income, do not have a financial advisor.

These are disturbing numbers, especially since we have data indicating the benefits of working with a financial advisor. The study found that, for Gen Xers working with a financial advisor, 23% had $200,000 or more saved for retirement, compared with 12% among those not working with a financial advisor.

To learn more, check out my full article on this issue here:
http://insightlaw.net/bobbys-blog/generation-x-missing-the-financial-boat-by-not-working-with-an-advisor

Mythbuster - You Still Own the Assets in a Revocable Trust

Some people have the mistaken belief that if they set up a revocable trust and place assets in that trust, you can't touch those assets going forward. This is simply not true. One of the biggest benefits of a revocable trust is that you have just as much control – if not more – when you create a revocable trust and transfer assets to the trust.

To learn more, check out my full-length article on this topic:

Bobby’s Estate Planning Mythbuster: Access to Assets Held in a Revocable Trust

Estate Planning Disasters of the Rich and Famous

Many people think that if someone has a bunch of money or is famous, they have all of their financial affairs in order. They have an organized, well-structured estate plan and their loved ones will certainly be taken care of. Unfortunately, this is a complete misconception. The sad fact is that many wealthy individuals and movie stars fail to take the time to meet with an estate planning attorney to establish an organized, detailed estate plan. The result is an estate planning fiasco that costs the estate millions of dollars or winds up in court. I recently wrote a blog highlighting just a few estate planning nightmares. Check it out here:

Title: Famous People and Estate Planning Disasters
http://insightlaw.net/bobbys-blog/famous-people-and-estate-planning-disasters

Community Bankers

From a business owner's perspective, I am becoming more and more fond of community banks.  I actually had dinner with my bank's president last night and I felt like I was talking to one of my friends.  For so long, I was using bigger regional or national banks and I really don't know why. They always made me fell like I a number.  I would cringe anytime I needed some banking information or god forbid a loan.  Every time I called PNC, I would be directed into a 10 minute minimum phone directory chain with endless pin numbers and passwords.  All this time spent just to hear the computer generated voice say I need to jump through another hoop. I want a banker who knows me and a place where a human being picks up the phone when I call. I am selfish in that I hope my community bank stays a secret so that I can keep getting this great service and more importantly great relationship. Unfortunately for me, I don't think it will stay a secret long because word will get around that the team at Main Street bank is committed to being responsive to their clients. If my business is ever in a bind or if I need clarification on a banking policy I know I have someone who I can call who at least knows who I am and will give me a straight answer.  I believe I have spent far too much time with the wrong banks.


I recently heard the following statement, "if you are going into business, you need to align yourself with a good accountant, lawyer and banker."  I think most business people overlook the importance of a trusted banker.  I identified with the statement because I sometimes feel the same way when explaining why it is makes all the sense in the world to do your estate plan with an attorney you like and who wants to create an ongoing relationship with you.  If you don't get along with the attorney, how do you expect your family to get along with him/her? The family and the attorney are ultimately going to have to work with one another at some point (unless you plan on living forever in that case it does not apply to you).  For those who want to risk all their wealth and love for their family on a downloadable form, good luck. You get what you pay for as I see instances everyday of poorly thought out plans with little to no follow-through by either side.  When I heard the statement quoted above from the CEO of my community bank, it occurred to me how many business people miss the simple point that a relationship with the right banker is just as important to your business as working with the right accountant or attorney.  I missed the point for many years so it should not be a surprise if it doesn't automatically click for others.

As a business owner, the lesson I learned is that I should not expect everyone to automatically get my business' mission of  'creating plans that work'.  Sometimes I would wonder what I was saying wrong because I felt that people did not perceive the value we are providing. How we are so different from most of the competition because we simply have a maintenance plan with our clients to keep their plan updated with changes in the law and family.  As the CEO of my company, I just need  keep our message clear and our team focused on our clients.  Eventually it will click for other people just like it clicked for me.  At least that is what i am hoping. . .

This blog is not intended to be used as legal, tax or financial advice.   

Why I love being an estate planner

Driving into work today I was thinking about the rest of my November leading into Thanksgiving and I had to smile.  Work doesn't feel like work anymore.  First, I was thinking about ways I could boost my team's morale and their bottom line by tying customer retention with a law firm retirement plan.  I believe my law firm's future (InSight Law) depends on treating our existing clients like one of my own family.  I want my team to understand that their future is tied to our clients' ongoing satisfaction. 

Second, I thought about the future of InSight Law.  I feel lucky enough to have the type of relationship with my clients that they can tell me anything.  We set the expectation early that we are in this together and I believe this mutual respect makes the difference.  My value to the client is that the more information I know about the family and specific situation, the more legal options I will be able to identify for the family.  Why I love being an estate planner is that I get to work with people in a setting where I can be creative in my art while also applying sound legal techniques.

For example, one of my client's is trying to decide whether he should pursue 2012 end of year estate tax planning given that the laws are potentially scheduled to change for the worse (i.e. higher taxes on the horizon).    He also has the fundamental concern for his family's future after he is gone.  He told me that he tried to dedicate at least some portion of his day just trying to improve his family's future. Whether it is simply making a phone call to a relative, or putting together a family photo album, planning for retirement, or working on his estate plan.  To me it clear, that this man loves his family dearly and has made it a priority in his life.  I knew I had to capture this love and non-material wealth as well or I would really be doing the family a disservice. So I interviewed him on camera and asked him about his family and his life.  I asked him about the good times, the bad times and what life lessons he would like to share, etc.  He opened himself up to who he was so that his family had a lasting memory of who he was and what his life was about.  He told me that the video meant more to him than his whole financial estate.  After he said that to me, I got that feeling of clear direction in my practice.  We connected who he was to his financial wealth through a video that showed his love for family.  Simple and elegant while taking full advantage of the laws of Virginia as well as federal laws.  We built a solid bridge for generations of his family to come and build on.

It is human nature that we need to grow and evolve (technology, medicine, law, etc.).  Unfortunately, in my profession it is the norm where the death of a family member causes a negative impact on the family's future.  Of course the death of a family member will cause grieving and there will be a time of mourning.  I believe it is my job to help the family through this transition by guiding them through the legal issues while letting them know your hopes for them.  It truly is the ultimate gift when done right.

I want to do this type of planning for all of my clients.  Unfortunately, only a minority of my clients elect to do the Legacy Interview(TM).  At least once a year, I give my clients the opportunity to sign up for an interview, however, it has not been well received to this point.  As a business owner, it is frustrating to see my clients not taking advantage of a service that I believe would make a big difference to their plan in the form of a positive impact on their family's future well being.  However, this is also why I love being an estate planner.  It is facing these types of challenges that makes my life rewarding.  Hopefully in a few years, it will be the norm where my clients all of have a Legacy Video interview in their file along with their legal documents.


Client statement references above were made with full permission of the Client.  This blog is not intended to serve as legal, financial or tax advice.  Seek your own qualified professional for specific questions. 

A System That Produces Positive Results

For the past 10 years, I have gone to Lake Placid, New York to play in a Lacrosse tournament.  The first 6 years I went to the tournament I would play on random local teams and our teams would never go very far in the tournament.  I always has a good time but there was always something missing (besides the fact that we never won the tournament). 

 However, the past 4 years my college teammates decided to put together a team ( I went to Syracuse University).  The alumni from Cornell had been doing this for years and they consistently won the tournament.  The first 2 years we played together we lost in the championship game to the Cornell Alumni (known as the "Rusty Red"). However, the last 2 years we have won the tournament (our team name is the "Burnt Orange").

I want to share some of my personal reflections about the tournament since I have made this change of playing with my former teammates.  Since I am now an estate planning attorney, I believe I can draw some connections between what I have experienced at the peaks of Lake Placid and my estate planning practice.

First and foremost, I think the culture and tradition of playing at Syracuse University adds immediate value to the quality of the team and the quality of the experience at Lake Placid.  Since we are familiar with the Syracuse system as well as each other's playing styles we have a much stronger team than most and the positive results are evident in the final scores of the games.

I believe a similar connection can be drawn to estate plans that are prepared for my clients. We use a consistent process and system to develop our clients' estate plans. Everyone essentially goes through the same steps (although there are many different variations depending on a client's personal situation, the process each client goes through is the same).  Since the clients' are familiar with the process they feel comfortable that they actually understand their plan.  Just like playing under the same system giving our team an edge on the playing field, our lawfirm's consistent system gives our clients' confidence in creating a strong plan for their family.  I think a lot of the negative experience with estate planning comes from the clients' lack of understanding of how their plan works.

The second important connection is that having a relationship with my teammates gives me an edge on the playing field since I know what to do and where my teammates are supposed to be at different stages of the game.  Similarly, I believe having a relationship with my clients will give our firm (and our clients) an edge in creating a successful plans with our clients.  I believe that the members of my law firm and my clients are teammates together with one common goal - creating a plan that works for our clients and their families.  Since the success of my clients' plan will occur at some date in the future then I think it is essential that we maintain a good relationship with our clients. That is why we communicate with our clients at least annually to make sure we are up to date with any changes in the family.  In turn, we provide our clients with updates in the law. If we maintain a good relationship with our clients over a number of years, then I believe the chances of a successful plan goes up dramatically.

I believe that the biggest difference in the way InSight Law works with their clients compared to the traditional estate planning process is that we commit to a formal maintenance and education program for our clients at the start of the planning process. Our clients all know to expect that the most important step in our process is the ongoing relationship that our law firm team has with your family.

These are my reflections about this years' Lake Placid lacrosse tournament. Go Cuse!

Social Security Survivor Benefits in a Divorce Situation

In a divorce situation where one spouse dies, there could potentially be 2 survivor benefits paid. It is important to designate who you want to manage the money for your minor children if you do not want your ex-spouse to be that person.

Where there are  children under the age of 16, the surviving spouse AND the kids would be entitled to separate benefits. If the spouse is under age 60 then he/she would be entitled to 75% and the kids would be entitled to 75%. A “Representative Payee” could be appointed for the kids that  could be a different person than the surviving spouse.  The Representative Payee can receive and manage the funds being paid to kids. The potential Representative Payee would have to apply to social security to become appointed as the official representative payee and they would also have to go to a face to face meeting at the local social security office to become approved. The surviving spouse could also apply. The ultimate decision rests with the social security office. Therefore, I would want a clear provision stating my client’s intent if this situation were to occur somewhere in his will or trust

Inherited IRA Required Minimum Distribution Rules

Given that most people these days own an IRA, I often receive questions about these IRAs work after the death of the IRA owner. Here are some basic rules:


1)  If you inherit an IRA from your spouse then you have a lot more options then if you didn't. In most instances (under current tax laws) if you inherit an IRA from your spouse, you will probably roll your spouse's IRA into your IRA (however this may not always be the best route, it just depends on your cirumstances).

2)  If you inherit an IRA from anyone other than your spouse then you normally need to start taking money out of that IRA by December 31 of the year after the person died. Think about it. IRAs grow tax deferred while you are alive and taxes aren't paid until you take the money out. If someone dies with money in their IRA the IRS stands to lose all the taxes they could have collected if the participant took the money out before they died.  The term "Required Minimum Distributions" ("RMD") is the IRS's way of telling you that they want to tax you annually on at least a minimum amount of the IRA you have inherited (i.e. by December 31 of the year after death).

 How much you need to take out depends on different factors (was the beneficiary designation form correctly filled out at the financial company? even if they didn't fill it out properly you still have options after the death of the participant to try to fix it. If the forms were correctly completed then you probably can take distributions based on your life expectancy which is usually the best option. The worst case scenario is that you have to take it all out in 5 years which could cause a serious tax hit).

3)  Whose tax rate do you use? Whoever receives the distribution puts it on their tax returns therefore you use their rate.

4)  If you have inherited multiple IRAs from the same decedent, you may choose to combine life-expectancy distributions for those inherited IRAs and withdraw the total from one inherited IRA.However, you may not combine your RMD's from your own traditional IRA with your inherited IRA. Basically, if you have 3 traditional IRAs where you are the owner and 3 IRAs that you inherited you can take all of your own IRA required minimum distributions from 1 of your own IRA accounts (if you so choose) and all of your Inherited IRA distributions from 1 of the IRA inherited accounts (again if you so choose). You can't take your distributions from just 1 of the 6 accounts. Clear as mud? Don't you love the IRS?

All of the above is not intended to be used as tax advice or constitute legal advice. The above are a description of general issues I see in my practice and is for informational purposes only. Consult your lawyer or CPA if you want specific advice regarding your situation.

Another day another chance to get it right.

I am writing this blog at 8:18 am in the morning and already today was a good day. Like most other days, driving into work I thought about how this day would look like. Unlike most days, I received a jolt of energy in my heart and no. . .it wasn't from my morning coffee. It came about when I started thinking about the interview I was going to have with one of my clients and how much that interview means to me. I am doing a video legacy project for one of my clients. The purpose of the interview is to record his views on topics ranging from where his grandparents grew up to his favorite movie. I want to ask him what he admires most about his kids and major turning points in his life. I am not sure if my client knows it or not but this interview today is why I started my practice. You see, I never had the opportunity to interview my dad about these topics and there are no audio or video recordings that focused on his reflections about his life. My dad was a humble man but humility has nothing to do with it. I wish someone would have taken the time to interview my dad so I could understand his views now that I am a 40 year old man. I want to give this opportunity to as many people as I can because this gift is priceless. It is why I do what I do. Yes, today is a good day…

Why Does the Name of a Trust Matter?

As an estate planning attorney, a large percentage of my practice is devoted to creating trusts for my clients.  Normally, the name of the trust would be the name of the client along with the date of the trust.  For example, my trust reads the "Robert A. Feisee Living  Trust dated January 1, 2002".  I think that we are missing an opportunity in passing on more than just a sterile legal document when we pick the name of our trust.

A colleague of mine, John Warnick, Esq., is a visionary in this field who has really made me rethink the way I work with my clients. I went to a conference a few months ago where he explained that naming your trust is a great way to pass on your legacy and values to your beneficiaries.  It makes perfect sense and I am hoping to implement this technique with my clients this year and hopefully long into the future.

Here is my first draft of my new trust name:

"The Feisee Possibility Trust -   This name has been chosen to reflect our family’s heritage and belief that anything is possible if you put your mind to it and you believe in yourself.  My mother and father escaped from Iran and came to this country not knowing the language and less than a $100 to their name. They built successful medical practices through hard work and a belief in themselves.  I was a young boy who had a dream to play in the lacrosse national championship game and I did it.  I had a clear vision of my dream, I practiced every day and I believed in myself. Now I own my own law practice using the same tools that were taught to me by my parents.  Don’t ever lose your faith in yourself or your family.  You can do whatever you put your mind to. The possibilities are endless. . ."

 I think the new name of my trust has a better ring to it than my previous name. I am going to go with that one for now until I think of something better.  How about your trust? Do you like the name?  Do you think you can put more of YOU into that name?